Yanzhou Coal Mining (HKG:1171) Signed Merger Proposal with Gloucester Coal (ASX:GCL)

23.12.2011  |  ABN Newswire

Sydney, Australia (ABN Newswire) - Yanzhou Coal Mining (HKG:1171) (SHA:600188) (NYSE:YZC), one of China's biggest coal producer, has signed a proposal with Australia-based Gloucester Coal Ltd., with an aim to merge Gloucester Coal with Yanzhou Coal's wholly-owned Australian subsidiary Yancoal Australia.

The merged company will be owned 77% by Yanzhou Coal and 23% by Gloucester Shareholders who participate in the merger.

The combination of assets of Gloucester and Yancoal Australia is expected to create one of Australia's largest listed operating coal companies, with world-class coal production and export operations.

Singapore's Noble Group (PINK:NOBGF), Gloucester's majority shareholder with a 64.5% stake, intends to vote its shareholding in favour of the merger proposal.

The proposal is subject to the completion of due diligence by both parties, a process which is currently underway, and expected to be completed by late February 2012.

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